Personal Pension

Our online investment advice service simply asks you a number of questions to understand your investment objectives and risk profile to then allocate you to a suitable portfolio of investments that are managed by us on an ongoing basis as your appointed Discretionary Investment Manager. We simply provide electronic investment portfolio recommendations using the information you have provided us. It is therefore extremely important that you provide us with accurate information about your personal circumstances.

This service provides simplified investment advice which means it is limited to the specific amount of money you are investing through this service. The service does not advise on suitable account type (GIA, ISA, JISA, Pensions) to hold your investment portfolio. Moreover, the online advice service does not offer a full or broad assessment of your financial circumstances or consider any existing arrangements (investments, ISAs or pensions) you may have. The service may suit those who wish to self serve and have decided that they do not want a full advice service.

This online service may be suitable if you have a minimum of £1,000 available to invest over a minimum period of 3+ years. For those investing £50,000+ or those who wish to receive professional financial advice on existing investment arrangements should consider our comprehensive personal advice service.

A pension is a savings plan designed to help you save for your retirement in a tax efficient manner. A personal pension offers up to 45% tax relief on contributions. Any investment gains that arise from personal pension are free from income, dividend and capital gains tax.

If you are self employed, or your employer does not have a company pension scheme, a personal pension could be the right way to save for your own retirement. Personal pension can also be used to top up the benefits you will receive under a company pension scheme.

A personal pension could be right for you if you:

• Are looking to build up a pension fund in a tax-efficient way
• Are prepared to commit to having your money tied up, normally until at least age 55 (but set to go up to 57 from 2028)
• Understand that investment growth is not guaranteed
• Are looking to build up a portfolio of investments

It may not be suitable if you:

• Want unrestricted access to your money, or
• Wish to invest directly into assets, such as commercial property, that are not available through this personal pension.

Fundment is the platform provider selected by Simply Ethical to deliver its Simplified Advice Online service. Fundment Limited is the pension provider. Fundment is authorised and regulated by the Financial Conduct Authority (FCA) 732727 and registered in England and Wales 08884918.

To open an account, you must be:

• At least 18 years of age.
• Resident in the United Kingdom
• If you are a parent or legal guardian of a child under the age of 18, you can also apply for a Junior Pension on their behalf. (Junior Pension is not currently available through online advice service)

The minimum investment to open an account is £5,000. This can be in the form of new pension contributions or transferring existing pension(s).

Fundment is the platform provider selected by Simply Ethical to deliver its Online Advice service. Fundment will hold your money as Client Money in accordance with the FCA Rules which, among other things, require Fundment to hold your money in a designated client bank account, in compliance with the FCA Rules. This means, amongst other things, that the Client Money Bank will hold your money in a designated client bank account which is an account kept separate from Fundment’s own funds.

No interest is paid on cash.

There is no limit to the amount of contributions that can be paid, but tax relief is only available on contributions if you are a ‘relevant UK individual’ (i.e. if you are under the age of 75 with earnings chargeable to UK income tax and/or you are a UK resident for tax purposes). You receive tax relief on contributions up to £3,600 gross each year, if you are a UK resident for tax purposes but have no taxable earnings. You can pay in more than this and still receive tax relief and the maximum is based on the lower of your UK Relevant Earnings and the Annual Allowance (set by HMRC).

The Annual Allowance is currently £60,000 gross. The Annual Allowance applies as a total limit on personal tax relief across all of your registered pension schemes in a tax year. It covers:

• Your personal contributions;
• Employer contributions made on your behalf; and
• Any increase in the value of retirement benefits you may earn from a final salary/defined benefit pension arrangements.

The Annual Allowance does not apply in the year of death or where benefits are taken early as a result of “serious ill health”. The Annual Allowance does not include transfers in from other pension arrangements as they have already qualified for tax relief when the contributions were originally invested in a pension scheme.

Your annual allowance may be lower if you have income above £260,000 (Tapered Annual Allowance may apply) or if you have flexibly accessed your pension (Money Purchase Annual Allowance applies). Moreover, you may be able to ‘carry forward’ unused allowance from the last three tax years to increase your limit for the current tax year. Carry forward relief is not available when the Money Purchase Annual Allowance (MPAA) applies. Please read the relevant section for more information.

Contributions can attract tax relief as outlined below:

• If you are a relevant UK individual and are not earning, you can pay up to £3,600 gross contributions (i.e.before tax relief) per annum, which means you can pay a net contribution of up to £2,880 (being the amount after adjustment for basic rate tax relief at 20%). The pension provider will claim the basic tax relief from HMRC on your behalf and invest it in your pension account.
• If you are employed or self-employed, you pay contributions net of basic rate tax. The pension provider will claim basic rate tax relief from HMRC and invest it in your scheme.

It should be noted that claiming tax relief generally takes between six and ten weeks. Tax relief monies can only be invested once they have been received from HMRC. If you are a higher rate taxpayer, you can claim the extra tax relief through your self-assessment tax return.

It’s the total that you, your employer and anyone else making payments on your behalf can together pay in or build up in any one tax year across all registered pension schemes in your name. It limits the personal payments on which you can actually claim tax relief. For 2023/24 the standard Annual Allowance is £60,000, unless you are already taking money out from a pension, when it is more likely to be £10,000 i.e. Money Purchase Annual Allowance (MPAA) for 2023/24.

The Annual Allowance applies as a total limit on personal tax relief across all of your registered pension schemes in a tax year. It covers:

• Your personal contributions;
• Employer contributions made on your behalf; and
• Any increase in the value of retirement benefits you may earn from a final salary/defined benefit pension arrangements.

The Annual Allowance does not apply in the year of death or where benefits are taken early as a result of “serious ill health”. The Annual Allowance does not include transfers in from other pension arrangements as they have already qualified for tax relief when the contributions were originally invested in a pension scheme.

Your Annual Allowance may be lower if you have income above £240,000 (Tapered Annual Allowance may apply) or if you have flexibly accessed your pension (Money Purchase Annual Allowance applies). Moreover, you may be able to ‘carry forward’ unused allowance from the last three tax years to increase your limit for the current tax year. Carry forward relief is not available when the Money Purchase Annual Allowance (MPAA) applies. Please read the relevant sections for more information.

You can access your SIPP at any age from age 55 (but set to go up to 57 from 2028). You may also take benefits earlier if you suffer illness or an accident which leaves you permanently unable to carry out your current occupation and you cease that occupation.

Please ensure you have added your beneficiaries through your online account. On receipt of a certified Death Certificate by Fundment, all funds will be moved to cash at the date of notification, and on-going adviser charges stopped.

Death claims for all products, other than SIPPs, will only be settled after probate or Letters of Administration is/are received by Fundment and to the payee as instructed on a claim form approved and signed by the Executors or Administrators.

Previously notified nomination of beneficiaries’ instruction will take precedence. The money will remain invested until such time as a Death Certificate is received.

Fundment will write to your beneficiaries setting out the options available to them which include:

1. Taking out cash lump sum
2. Buying an annuity from an annuity provider
3. Flexible income through Drawdown pension

Yes, you can transfer out to another provider as long as the provider is HMRC approved. You should consider speaking to your financial adviser before making a transfer.

You are able to change your mind within 30 days of opening your account and receiving your illustration document. Any fees charged during this period will be refunded to your account.